• Welcome to the WDWMAGIC.COM Forums!
    Please take a look around, and feel free to sign up and join the community.You can use your Twitter or Facebook account to sign up, or register directly.

Changes for Galaxy's Edge Temporarily On Hold

HauntedPirate

Sheltered-at-home Park nostalgist
Premium Member
They just told their shareholders on their last earnings call to expect $280 million less in profit just this quarter from the park closures. Are they insured? i don't know, but even if they are they're losing $280 Million Dollars!

Not quite.

Keeping its Asian theme parks closed an estimated two months because of the Coronavirus outbreak could cost Disney $175 million, the company revealed Tuesday, as it released first-quarter earnings that showed its U.S. theme parks grew attendance by 2%.

Disney leaders said they expect a $135 million hit on second-quarter operating income from Shanghai Disney and $40 million from Hong Kong Disneyland, which both closed indefinitely last month.
 

kthomas105

Well-Known Member
....because they don’t know how to properly manage their business.
You are not totally wrong but no industry tied to china has a specific insulation for shut downs due to virus outbreaks. You can argue they should have, but the truth is the tourism industry will always be the hardest hit when it comes to extraordinary circumstances such as these. You could look to the oil crisis that pumped the breaks on many expansion projects at WDW in the 70's as a similar parallel although this is certainly not yet that extreme. One can certainly believe that the quarterly earnings call may not be as upbeat for the parks division like they normally are.
 

peter11435

Well-Known Member
You are not totally wrong but no industry tied to china has a specific insulation for shut downs due to virus outbreaks. You can argue they should have, but the truth is the tourism industry will always be the hardest hit when it comes to extraordinary circumstances such as these. You could look to the oil crisis that pumped the breaks on many expansion projects at WDW in the 70's as a similar parallel although this is certainly not yet that extreme. One can certainly believe that the quarterly earnings call may not be as upbeat for the parks division like they normally are.
No doubt the closure of the Asian parks is a significant issue for the company. Obviously difficult decisions must be made to successfully weather the storm. However compromising the integrity and future success of your still operating businesses is not the answer.
 
Last edited:

lazyboy97o

Well-Known Member
You are not totally wrong but no industry tied to china has a specific insulation for shut downs due to virus outbreaks. You can argue they should have, but the truth is the tourism industry will always be the hardest hit when it comes to extraordinary circumstances such as these. You could look to the oil crisis that pumped the breaks on many expansion projects at WDW in the 70's as a similar parallel although this is certainly not yet that extreme. One can certainly believe that the quarterly earnings call may not be as upbeat for the parks division like they normally are.
The oil crisis in the 70s is not at all similar. Walt Disney Productions was a vastly smaller company that had just spent an ungodly sum on building Walt Disney World and lost it’s remaining founder. Big or small, Disney is absolutely terrified of reporting a loss at the parks no matter the circumstances and it’s because their leadership neither likes nor understands the business. They’re incapable of standing up and justifying even the smallest blip or the impact of external circumstances. Cutting away at the experience of the parks that remain open isn’t going to do anything to reopen the parks in China.
 

mikejs78

Premium Member
I'm sure I foresaw a pandemic out of nowhere, that would shut down multiple parks in an unprecedented way, when I fabricated said information, and thus knew all along how to change course...

:rolleyes:
Some of your claims strain credibility. For example, the changing of opening hours to 10 AM. I can see them doing a ton of cuts in WDW to make up for the shortfall, but not this.
 

monothingie

UNPRECEDENTED DEMAND ENTHUSIAST
Premium Member
Some of your claims strain credibility. For example, the changing of opening hours to 10 AM. I can see them doing a ton of cuts in WDW to make up for the shortfall, but not this.
One of the items mentioned was closing(extending the refurbishment) of typhoon lagoon until the end of May. Which begs the question of why you would close a presumably profitable park to save money? Wouldn’t it make more sense to just close the water parks now during winter when they are minimally used?
 

CastAStone

Well-Known Mumbler
Premium Member
It is, if your sole focus is on quarterly results.
To be fair they are about the see their movie business cut in half vs 2019, ABC is hemorrhaging viewers, ESPN is hemorrhaging subscribers, and they just gave up hundreds of millions of dollars in guaranteed, no cost D2C revenue in November to launch an incredibly expensive D2C offering that won’t return so much as a profit for years, and 21st Century Fox has essentially no meaningful pipeline of Movies or TV to start contributing revenue with.

So a lot was depending on Parks and Products this year.

Here’s hoping Live Action Mulan and Onward do something unexpected.
 

TrainChasers

Well-Known Member
One of the items mentioned was closing(extending the refurbishment) of typhoon lagoon until the end of May. Which begs the question of why you would close a presumably profitable park to save money? Wouldn’t it make more sense to just close the water parks now during winter when they are minimally used?

I think they have to have 1 water park open or else people will ask for a refund for the “water parks and more” option which really doesn’t include any “more” nowadays does it?
 

lazyboy97o

Well-Known Member
One of the items mentioned was closing(extending the refurbishment) of typhoon lagoon until the end of May. Which begs the question of why you would close a presumably profitable park to save money? Wouldn’t it make more sense to just close the water parks now during winter when they are minimally used?
You force more people to crowd into a single park. Less operating costs by having more people do less.
 

Sirwalterraleigh

Premium Member
To be fair they are about the see their movie business cut in half vs 2019, ABC is hemorrhaging viewers, ESPN is hemorrhaging subscribers, and they just gave up hundreds of millions of dollars in guaranteed, no cost D2C revenue in November to launch an incredibly expensive D2C offering that won’t return so much as a profit for years, and 21st Century Fox has essentially no meaningful pipeline of Movies or TV to start contributing revenue with.

So a lot was depending on Parks and Products this year.

Here’s hoping Live Action Mulan and Onward do something unexpected.
You just described all the reasons I think Iger could “spend time with family” at any moment...I think he ideally would like to coast into 2021...but that parachute is on.

Onward sounds like a sleeper hit...by the way.

Disney was expecting massive box office for Milan in Asia...that’s wrecked and there boo hooing already
 

CastAStone

Well-Known Mumbler
Premium Member
You just described all the reasons I think Iger could “spend time with family” at any moment...I think he ideally would like to coast into 2021...but that parachute is on.

Onward sounds like a sleeper hit...by the way.

Disney was expecting massive box office for Milan in Asia...that’s wrecked and there boo hooing already
I think Iger has them on the right track to be incredibly successful in say 2023, but they were planned thin this year as a step along the way and couldn’t afford any out-of-their-control disasters.

Stock price shot way up around the Disney plus launch and is still near its all time high. Iger’s continued welcome with the board and investor community will be judged on Disney+ and Hulu and almost nothing else.
 

Josh Hendy

Well-Known Member
Daughter audits a company that trades on NY stock exchange ... insiders told her, right now it's ALL about "will the stock buybacks go through and will shareholders get a nice little pop."

It"s all about pump 'n' dump right now.

The CEO has made "making it to the $ billion net worth" listing his #1 goal.

Presumably this goes for Iger x 10.

Sorry
 

Sirwalterraleigh

Premium Member
Daughter audits a company that trades on NY stock exchange ... insiders told her, right now it's ALL about "will the stock buybacks go through and will shareholders get a nice little pop."

It"s all about pump 'n' dump right now.

The CEO has made "making it to the $ billion net worth" listing his #1 goal.

Presumably this goes for Iger x 10.

Sorry
I think anyone that doesn’t think the money people aren’t ready to bail at a moments notice is a fool.

They got caught in 2008...lots of 10 figure people losing half their net in a month.

The won’t happen again...they’ll bail
 

SirLink

Well-Known Member
Just dropping this here but the meeting was never just going to be used solely to discuss changes coming to Galaxy Edge it was going to discuss the US and Paris resorts for the present and future. Good news for Disney according to the Chinese government as per Sky/BBC it will reach its peak in two weeks from the 14/02 and Disney and its partners in Shanghai/HK should have decision by mid March.
 

monothingie

UNPRECEDENTED DEMAND ENTHUSIAST
Premium Member
Just dropping this here but the meeting was never just going to be used solely to discuss changes coming to Galaxy Edge it was going to discuss the US and Paris resorts for the present and future. Good news for Disney according to the Chinese government as per Sky/BBC it will reach its peak in two weeks from the 14/02 and Disney and its partners in Shanghai/HK should have decision by mid March.
Does anyone honestly believe anything the Chicom government has to say about this?
 

Register on WDWMAGIC. This sidebar will go away, and you'll see fewer ads.

Top Bottom